Ameren Bonds Climb to Two-Month High on Dynegy Asset Purchases

March 14 (Bloomberg) -- Ameren Corp.’s bonds rose to the
highest level in more than two months after power producer
Dynegy Inc. agreed to acquire five coal-fired power plants of
the St. Louis-based company.

The company’s $300 million of 7 percent notes due April 15,
2018, climbed 17.8 cents to 73 cents on the dollar to yield 14.7
percent at 10:46 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory
Authority. That’s the highest since the securities reached 78.3
cents on Jan. 3.

Dynegy will pay no cash in the transaction and Ameren will
spend at least $133 million to buy back three natural gas-fueled
plants from the unit it’s selling, the companies said in
separate statements today. The subsidiary will come with $825
million of non-recourse debt and includes Ameren’s retail and
marketing assets in the state.

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